where Ap contains all autonomous expenditures in the model (it will be a function of r) and h is a number. After you find this h, use it like we used c in our model in class to find the multiplier. Derive the equation for the autonomous planned spending schedule, Ap. b. Derive the equation for the IS curve. с. d. Calculate the slope of the IS curve, Ar/AY. (Hint: Use the equation of the IS curve to compute AY/Ar. Then use the fact that the slope of the IS curve, Ar/AY, equals the inverse of ΔΥΔ.)

where Ap contains all autonomous expenditures in the model (it will be a function of r) and h is a number. After you find this h, use it like we used c in our model in class to find the multiplier. Derive the equation for the autonomous planned spending schedule, Ap. b. Derive the equation for the IS curve. с. d. Calculate the slope of the IS curve, Ar/AY. (Hint: Use the equation of the IS curve to compute AY/Ar. Then use the fact that the slope of the IS curve, Ar/AY, equals the inverse of ΔΥΔ.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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